Shell Q2 profit slides to US$6.3 billion on weaker trading, refining

SHELL reported a 19 per cent quarter-on-quarter drop in profit to US$6.3 billion on Thursday (Aug 1) reflecting weaker refining margins and oil and gas trading, though still beat analysts’ forecasts.

The British company also said it would buy back a further US$3.5 billion in shares over the next three months, at a similar rate to the previous quarter.

It kept its dividend unchanged at 34 US cents per share.

Shell’s second-quarter adjust earnings, its definition of net profit, exceeded analysts’ expectations of US$6 billion.

They rose from US$5.1 billion a year earlier, but were lower than the US$7.7 billion profit Shell booked in the first quarter.

The quarter-on-quarter fall reflected lower prices and sale volumes as well as weaker trading at Shell’s flagship liquefied natural gas division, which were a result of seasonally lower demand.

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Lower refining margins and weaker oil trading also weighed on the results. REUTERS